=+6. tJ. Smith and Co. are retailers of electrical applicances. As from 1st July, 1953, they have
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=+6. tJ. Smith and Co. are retailers of electrical applicances. As from 1st July, 1953, they have sold goods on hire-purchase terms as well as for cash.
The cash selling price of all their goods shows a gross profit of 33Í%
on the cost price and 10% is added to the cash price to arrive at the hire-purchase price with payments spread over three years. In the Trading Account for the year to 30th June, 1954, set out below, the full profit including the additional 10% has been taken to credit on all hire-purchase sales during the year:
£ £
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